The State Bank of Vietnam (SBV) has announced that it will acquire allthe equity of the Vietnam Construction Bank (VNCB) as part of bankingreforms.
The SBV said the acquisition is essential and stakeswill be transferred at a price of zero dong per share. This is based onthe law governing credit institutions, regulations on stake acquisitionfor specially-supervised lenders, and resolutions passed at VNCBshareholder meetings.
An irregular VNCB shareholder meeting todiscuss evaluation and capital, as well its audited financial situation,was held in the southern province of Long An on January 31, the centralbank revealed.
An SBV official, who wanted to remain anonymous,told Vietnamplus that the takeover is aimed at helping VNCB strengthenits operations, and the most important goal is to restore the bank'sability to pay money to people, who want to withdraw their deposits fromthe bank.
"We would rather pay money to gain social stabilitythan leave people losing money, which will cause vulnerability inconfidence and social problems that may prove to be even more costly todeal with," the official pointed out.
The SBV said the Bank forForeign Trade of Vietnam, or Vietcombank, will also take part inmanaging and operating the VNCB. This is likely to help the constructionbank succeed in its restructuring schemes and assure the public of itsmore efficient and secure business performance.
The VNCB is beingrestructured and had signed a comprehensive cooperation agreement withVietcombank to facilitate growth and sustainability last August.
Accordingto the central bank, its takeover of the VNCB will terminate allstatuses, including the rights and interests of existing shareholders inthe construction bank. But the legal rights and interests of depositorsat the bank will be preserved.
The VNCB was established from theTrust Bank in May 2013. The Trust Bank was operational for 23 yearswith a charter capital of 3 trillion VND, or 142.85 million USD.
Inmid-2014, the SBV appointed new officials to the VNCB after some formertop executives at the bank were arrested for alleged violation of Stateregulations.
SBV officials had recently mentioned the possibleadoption of strong measures, such as dissolutions, bankruptcies andcompulsory mergers and acquisitions for reinvigorating the bankingsystem's health.-VNA
The SBV said the acquisition is essential and stakeswill be transferred at a price of zero dong per share. This is based onthe law governing credit institutions, regulations on stake acquisitionfor specially-supervised lenders, and resolutions passed at VNCBshareholder meetings.
An irregular VNCB shareholder meeting todiscuss evaluation and capital, as well its audited financial situation,was held in the southern province of Long An on January 31, the centralbank revealed.
An SBV official, who wanted to remain anonymous,told Vietnamplus that the takeover is aimed at helping VNCB strengthenits operations, and the most important goal is to restore the bank'sability to pay money to people, who want to withdraw their deposits fromthe bank.
"We would rather pay money to gain social stabilitythan leave people losing money, which will cause vulnerability inconfidence and social problems that may prove to be even more costly todeal with," the official pointed out.
The SBV said the Bank forForeign Trade of Vietnam, or Vietcombank, will also take part inmanaging and operating the VNCB. This is likely to help the constructionbank succeed in its restructuring schemes and assure the public of itsmore efficient and secure business performance.
The VNCB is beingrestructured and had signed a comprehensive cooperation agreement withVietcombank to facilitate growth and sustainability last August.
Accordingto the central bank, its takeover of the VNCB will terminate allstatuses, including the rights and interests of existing shareholders inthe construction bank. But the legal rights and interests of depositorsat the bank will be preserved.
The VNCB was established from theTrust Bank in May 2013. The Trust Bank was operational for 23 yearswith a charter capital of 3 trillion VND, or 142.85 million USD.
Inmid-2014, the SBV appointed new officials to the VNCB after some formertop executives at the bank were arrested for alleged violation of Stateregulations.
SBV officials had recently mentioned the possibleadoption of strong measures, such as dissolutions, bankruptcies andcompulsory mergers and acquisitions for reinvigorating the bankingsystem's health.-VNA
